YIKES-Please advise

Mar 182011
 

Question:  Yesterday, I rcvd a letter in the mail from a collection agency stating that I owe $1045.00 for school and if I do not pay it, I could have a judgement placed against me.  The balance is from 2007.  I called the school that I attended 4 years ago and yes they told me that I had a balance-I knew that I left there owing some money but put off paying it until I could afford it.  Since then I moved, got married and moved again and haven’t thought about it in a long time-Irresponsible me!

Okay, well today I went to the school to pay it cause well 1) I owed the money and 2) I owed the money.  I know most companies won’t let you pay if they have already sent off to collection agency because they have to pay to do that.  She let me pay.  Does this mean they will pull it from the collection agency & it not show on my CR?  I thought about responding to the letter that I rcvd from the CA and asking them to validate the debt now that it is paid.  Should I send a DV to CRA’s?The school asked if I did rcv the letter from the CA and I told them no that I was thinking of going back to school and taking some classes in the summer and when I called to see what all I needed to do to enroll and that’s when I learned of the balance.  ok, ok so I did fib there but the point is I paid it.  Now what?  Please advise-been making progress on my CR and paying those that I do owe.

Thanks!!!!!

Pre-Approved Offers

Mar 162011
 

When I got home from work last night, there was a letter from Capital One pre-approving me for an auto loan.  While I don’t need this as I just bought a car over the summer, is it possible that I might start receiving other pre-approved offers, say that next level of credit cards above the Orchards and First Premiers?  

 

At my first I thought the Cap1 letter was just because I currently have 2 cards with them in good standing, but it also came at a time when my scores have been shooting up.  I also haven’t been receiving any of the offers from the rebuilder cards recently, so I’m wondering if my profile is changing where I’ll start being courted by that next tier.

 

Not that I plan on going on an app spree if I do start getting the offers, but it’s always nice to feel wanted. :smileyhappy: 

Does the Public Services Loan Forgiveness Program apply to previously consolidated loans?

Mar 052011
 

I will be graduating in the summer and have been looking into the Public Service Loan Forgiveness Program (PSLFP).  I will be graduating from a doctoral program.  Upon entering the program, I consolidated all of my undergraduate Direct Loans (Stafford subsidized and unsubsidized) with Nelnet.  I currently have Direct Loans (Stafford and Graduate Plus) which are would be included in the PSLFP.  Is it possible to include the Nelnet consolidated loans into this program since they were originally Direct Loans?

Merchandise cards worth paying for to boost credit score?

Feb 232011
 

I been cruising the internet for Credit Repiar podcasts that I listen to at work. I got all pumped up after listening to a show talk about adding a sub-prime merchandise card to their credit. The high credit limit will boost a consumer’s credit utilization, you just have to be able to accept all the high fees.

 

Is there any merchandise card that is worth the expense? Do any actually report to more than one bureau? I only ask because I am in the market to buy a new car this summer and could use a nice boost. I would be willing to pay some high fees in order to get a better loan.

 

Anyone know of a real worthwhile card? Or are they all scams?

 

Thanks.

Question on Collections Account

Feb 222011
 

Follow this maze: My wife made a serious mistake with a credit card and made some decisions without my knowledge (she panicked a bit when a company threatened legal action), but here are the dots I’ve connected looking through her credit reports.

 

She had a Chase account with a balance over $8,000. The account is listed as transferred to another lender in Dec. 2007. My assumption is Arrow Financial (who I’ve seen mentioned negatively on these boards and elsewhere) took the debt, as there is an entry on her credit report from Arrow beginning in Dec. 2007 w/ a similar balance. From there, I believe the account was sent into collections beginning in the summer of 2009, to a company called Brachfeld Law Group in Texas. A quick Google search showed that Arrow and Brachfeld appear to be connected.

 

My wife was contacted by Legal Advocates for Consumers in Debt, a company I believe that is located in Chicago. They are paying $245 a month to Brachfeld (the statements from LACD are how I tracked down their name) and taking their $40/month off the top. Not ideal and probably not what I’d have done had I really known the situation, but at this point, it is what it is.

 

Here are my questions.

 

1.) On her credit report, Arrow continues to show balances in the $8,000 range and is listing the account in Collections, though it appears in the Closed Accounts section of her report. Is this OK? Should the entry from Arrow be reflecting a new balance? Should it continue to appear every month as in collections?

 

2.) Without knowing the full balance of the account as I’m typing this message (my guess is she’s paid between $3-5,000 by now), what is the best way to go about having this item removed from her report as a collections account? It seems Arrow is awfully difficult to deal with based on what I’ve read. Is it even worth contacting them or their collection agency to determine a settlement?

 

Hopefully this isn’t too confusing. I normally just read and don’t post, but I’ve worked hard the last year or so getting my credit straightened out and would like to do the same with hers. I wasn’t in nearly as bad a shape as she is at this point (I just had some debt to pay down), but it seems like we won’t be able to get much done before tackling this issue and would appreciate any help.

Older collections account and need help to determine what to do.

Feb 012011
 

My husband and I have several accounts that have been in collections for almost two years now. This month we are able to pay some of the debt back. We want to fix our credit report and score. The accounts are credit card accounts. We can only afford 6k and we have in order to pay in full 8k. All the accounts are charged off. Our scores are about 515. Should we settle are accounts and have them all settled or should we pay in full and just not pay two accounts and try and pay them this summer? What would be best since our score is already low. We really want to have it improved but are stuck and don’t know what to do. Please help, thank you.

Basic FICO repair advice

Jan 272011
 

I am just getting my feet wet in “credit repair”, but the basics: I have ten years of credit history reporting, Experian: 669, Equifax: 679, and TransUnion: 652. My FICO (myFico.com) is 582. There’s a huge disparity between these numbers, but I realize now that the FICO counts. I attempted to get a home loan in December 2010 and was surprised when I was declined for the loan but after researching FICO I found my number. I have the following being reported:

Chase Auto (30 days x 1)-November 2010 (very recent)–sent a GW letter. auto lease with 13,000 remaining.

Community Nat. Bank (installment, 30 days x 1)-August 2010–sent a GW letter, since paid off in full and closed.

HSBC furniture card (30 days x 3)-December 2008–sent GW letter, no missed pmnts since dec 2008

I have 11 hard inquiries being reported  (car shopping then home shopping mostly)

I’ve been enrolled in a credit counseling service since 2008-divorce slayed my finances.

My credit to debt ratio is listed as 54%.

I have 12,000 in revolving debt and 14000 in revolving (student loans that are paid by military and my car lease).

All of my revolving debt is closed except for about 1000 (wish I had kept some open).

 

To get to the point, I still want to buy a house in July when my apartment lease is up! I’m not sure how much my score can go up between now and then but I’m hoping that my FICO will soon follow with my other scores. I wrote my goodwill letters and sent yesterday, and myFICO advises me to pay off revolving debt and stop having inquiries. I know that the recent late payments are hurting me (I honestly just thought I had paid them–started using autopay now!) and the inquiries bring score down. My questions: If HSBC, CNB, and Chase somehow decide to drop the lates, approximately how much do you think this will help score? I’m getting a VA loan so I’ve got to get 620/640 the way I understand it.

 

How long will the inquiries in December (mortgage lenders x 2) continue to affect score? As in, if I turn around and re-apply in say, May or June, will I see another big drop in FICO?

 

I will have all my open revolving accounts paid to $0 by May (it’s only another $2000), but my closed accounts will take some more time. My plan is to pay as much off as I can and see how the score reacts, I just may have to sign another 6 month apartment lease if I can’t get approved by June. :(

 

Is it worth it to ask for higher spending limits on the few credit accounts I have left open? Temptation to use them isn’t a problem, but more inquiries could be…

 

My mortgage officer said that I should put my tax return in savings rather than use it towards revolving debt…? Does savings/checking balances affect FICO?

 

I apologize for the novel, I just wanted to project a clear image of my position. I’m not desperate enough to seek a cosigner, but I AM really trying to purchase a home this summer for myself and my daughter so I’m very motivated. I have learned many many money lessons in the last month!! Thank you all for the forum and in advance for any responses to these questions.

How long will this take?

Jan 112011
 

Until last month my FICO score was 771, but then two things happened.  In late November I accepted a $2500.00 line of credit increase and then I got very near to the max limit on my other card.  Subsequently, my FICO score dropped to 743.  I use my credit card for everything, but I pay it off every month and the total amount of interest that I paid last year was only $7.00.  I have since learned to not use my credit card so liberally, even though I pay it off every month.  So, my question is as follows:  If I keep my credit utilization under 7% and do not accept any increases in my credit limit or open any new accounts…just how long will it take my score to get bumped back up?  I want to purchase a new house this summer and I want to get the best mortgage rate.  I thank you all in advance for any comments that you might have.

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